Rating agency projects Russian banks’ net profit at up to US$31.7 bln in 2023

Russian banks’ net profit will exceed 2 trillion rubles (US$24.4 bln) in 2023 unless there are new macroeconomic shocks, and it may even hit a record high registered two years ago, rising to 2.4-2.6 trillion rubles (US$29.3-31.7 bln), according to Russia’s National Credit Ratings’ (NCR) forecast.

“In its base-case scenario the NCR expects net profit of the banking sector to total 2.4-2.6 trillion rubles in 2023 and hit 2021 high (2.37 trillion rubles). Return on the sector’s capital will get back to the level of 2020-2021 and amount to 16-18% by the end of the year,” the rating agency said.

In the first quarter of this year Russian banks already earned a total of 881 bln rubles (US$10.7 bln) worth of net profit, which means return on capital equaled 32%, analysts said, adding that the combined profit of the country’s top ten lenders might approach a record 2 trillion rubles (US$24.4 bln) by the end of 2023.

Source: Lao News Agency